Mills Pyatt Management Accounts Service

Management accounts are a set of financial statements prepared periodically e.g. monthly or quarterly. Typically the statements include a profit and loss account, balance sheet, cash flow statement and a short report.

The preparation of management accounts provides a valuable tool on which the business owner can manage the business. Informed decisions can be taken based upon objective data and be taken in a timely manner to enable the business to succeed.

Benefits to you:

• Business Control – Management accounts provide sufficient information to detect positive and adverse trends in sales volumes, operating margins, costs and profit. Importantly this information will be available throughout the trading year and allow for informed business decisions to be taken.

• Provides focus on key business areas such as sales and costs.

• Tax Planning and Dividend Payments – When up to date information is available, a director/owner can plan with greater confidence when transactions need to be made. This may be helpful in legitimately reducing the tax liability of the company, and to maximise the potential benefits by payment of dividends as opposed to salary.

• Demonstrate the Owner is in Control – If the owner can demonstrate that there is a comprehensive understanding of what is happening within the business then respect will be gained and the level of comfort in any business relationships will be heightened. This may be of particular importance in the relationship with the bank manager.

• Detection of Fraud – A regular review of the financial performance of the business will increase the possibility of detecting fraud or other malpractices.